Indian two-wheeler major, TVS Motor Company has said that it might enter into a deal with , BMW Motorrad, a unit of the German premium carmaker, for sourcing technological know-how from the company.
TVS is also planning to develop high-end motorcycles under the partnership. Industry experts say that the partnership will allow TVS to create more efficient and powerful motor bikes and this will allow it to compete better with larger rivals like Hero MotoCorp Ltd and Bajaj Auto Ltd.
"The company is only in talks with German auto-maker BMW's Motorcycle division, BMW Motorrad for a technology tie-up. However, nothing has been firmed up as yet. The company will keep the exchanges informed once finality is reached in this regard,” the company said in a filing with the Bombay Stock Exchange (BSE).
The company had reported a disappointing result for June 2012 as its volumes declined 8 percent YoY to 168,693 units. The company sold 168,693 units in the previous month compared to 182,456 units in June of 2011.
The shares of the company rose 7.78% to Rs. 39.45 on the BSE at the time of reporting this morning. On the other hand, the shares rose 7.77% to Rs. 39.50 on the NSE.